The restructuring team of the bankrupt crypto exchange FTX submitted the final voting results to the United States Bankruptcy Court in Delaware during the 'confirmation hearing' on October 7th, Eastern Time, and the plan was approved by Judge John Dorsey earlier.

Small creditors with future claims of less than $50,000 may start receiving compensation by the end of 2024, while larger creditors may have to wait until the first or second quarter of 2025 to receive compensation. The effective date of the subsequent payment plan and the expected start of distribution will be announced separately by the bankruptcy asset management institution, which was previously estimated to take two months.

Judge John Dorsey said:

"I want to congratulate... this is a typical case of how to handle very complex Chapter 11 bankruptcies."

How much compensation can creditors receive?

Based on the type of claim, the majority of customers (creditors holding amounts under $50,000) can receive approximately 118% of their losses as compensation, while some creditors can receive 142% of their losses as compensation.

According to the restructuring plan submitted by FTX to the Delaware Bankruptcy Court in May, once all assets are sold, the company estimates it will have up to $14.5 billion to $16.3 billion in cash available for distribution.

Creditors are dissatisfied with the valuation at the 'time of bankruptcy.'

However, it is important to note that future loss compensation is calculated based on the USD price of cryptos exercised by FTX on November 11, 2022 under Chapter 11 of the bankruptcy law, so unless the user's assets held in FTX are stablecoins, they will still incur significant losses in reality.

For example, when FTX applied for bankruptcy protection, the price of bitcoin was only about $16,000, but the current price of bitcoin is approaching $0.064 million, which means if creditors held a bitcoin at FTX at that time, they may only receive $16,000, which is only a quarter of the current price.

In response, Sunil Kavuri, the representative of FTX creditors, has criticized multiple times that creditors may actually only receive "10% to 25% of the value of their cryptos", leaving many creditors disappointed, even dissatisfied...

FTT soared 8%

What is puzzling is that despite the potential restart of FTX exchange being confirmed in January this year that "no investor plans to invest funds to restart FTX", the judge also added: "As the debtor will not restore the exchange, there is no basis for the tokens to appreciate...".

However, FTT price still surged after the news. According to CMC data, FTT is currently quoted at $2.64, with a nearly 8% increase in the past 24 hours, and a more than 110% increase in the past month. However, users should be cautious as FTT currently appears to be more like a meme coin, so beware of risks.

Is up to $16 billion in ambush set for the surge of bitcoin?

It is worth noting that if FTX does return about 14-16 billion US dollars to creditors in the fourth quarter of this year, it may bring a large amount of fresh capital to the cryptos market, which is worth our attention.

As for the bitcoin price, after briefly hitting $64,466 last night, 'selling pressure emerged,' and it dropped to as low as $62,126 around seven o'clock in the morning, reversing the decline by 1.8% in nearly 24 hours.